Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
Home»ETHEREUM NEWS»This could be the final hurdle for Bitcoin ETF approval.
ETHEREUM NEWS

This could be the final hurdle for Bitcoin ETF approval.

By Crypto FlexsDecember 23, 20233 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
This could be the final hurdle for Bitcoin ETF approval.
Share
Facebook Twitter LinkedIn Pinterest Email

There is one final hurdle for potential issuers ahead of the January deadline for the Securities and Exchange Commission to approve, reject or delay a decision on spot Bitcoin ETFs. This is an approved participant.

Bloomberg Intelligence analyst Eric Balchunas predicted that each Bitcoin ETF would need to have explicitly approved participant parameters in its S-1 before being considered for approval.

“This is not an easy final step and may stop some out of the starting gate,” Balchunas said Friday. on twitter. He then developed the hypothesis that “AP agreement + cash generation = approval.”

https://twitter.com/EricBalchunas/status/1738287502111244593

The approved participant wrinkle appears to be another attempt by the SEC to make it very clear who can and cannot participate in the creation and redemption of Bitcoin ETF shares, and, by extension, who can handle BTC directly. .

By definition, an authorized participant is an organization that can create and redeem shares in an ETF, other than the issuer itself. Typically, it is large banks and financial institutions that take on these roles.

Generally, the more authorized participants an ETF has, the higher its liquidity. When there is a shortage of shares in the market, authorized participants can create more shares. And if there are too many ETF shares on the market, that could reduce the number of shares available to authorized participants. In both cases, additional participants help keep the ETF’s stock price in line with the underlying asset, in this case Bitcoin.

A spot Bitcoin ​ETF is a product the industry has been wanting to approve for U.S. investors for over a decade. But the SEC has been adamant that there is too much risk to allow investors access to it. Chief among these risks are market manipulation and reliable price discovery.

In the screenshot, Balchunas showed a table tracking the status of Bitcoin ETF hopefuls. Half of them still allow shares to be issued in cash or in kind. But as the Bloomberg analyst himself said, spot stock creation is not the SEC’s starting point.

“The SEC will allow registered brokers to use Bitcoin, but they will not be happy with spot trading because that is not allowed,” he said in a webinar earlier this week. “I don’t think they want their unregistered subsidiaries to have access to Bitcoin. Cash generation solves this problem. This basically means that the issuer has access to the Bitcoin and no one else has access to it.”

The past two months have seen a flurry of meetings and phone calls between regulators and potential issuers such as Grayscale, Valkyrie and BlackRock. Many speculators say it is unlikely that the SEC will put this much effort into fine-tuning applicants’ S-1 filings at this point. Unless it was for the purpose of ultimately approving some of the S-1 documents.

There are currently more than a dozen Bitcoin ETF hopefuls considering applications with U.S. regulators. Companies have been trying to gain approval since 2013, but expectations were heightened when Wall Street giant BlackRock made a run in June with its iShares Bitcoin Trust.

BlackRock’s S-1 filing has received three amendments since it was filed, the most recent explicitly stating that the ETF would only allow stock issuance in cash and switching the fund’s ticker from IBTC to IBIT. If approved, the ETF will trade on Nasdaq.

Edited by Guillermo Jimenez.

Stay up to date with cryptocurrency news and receive daily updates in your inbox.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Is Alt Season finally here, just as Ether Lee’s tearing and a small cap follows?

August 11, 2025

Protocol Update 001 -scale L1

August 7, 2025

Stablecoins are finally legal

August 3, 2025
Add A Comment

Comments are closed.

Recent Posts

FLOKI’s Valhalla MMORPG Storms U.S. Television With 60-Day National Commercial Blitz

August 11, 2025

A Global Initiative To Transform Crypto Education From The Ground Up

August 11, 2025

Cango Inc. Acquires 50 MW Bitcoin Mining Facility In Georgia, Laying Groundwork For Future Energy Strategy

August 11, 2025

SIM Mining Cloud Mining Allows Global Investors To Easily Earn BTC And DOGE Profits Using Just Their Smartphones (daily Income Of $23,999 USD)

August 11, 2025

MultiBank Group Delivers Record H1 Results With $209M Revenue And MBG Token Driving 7X Returns Since Launch.

August 11, 2025

The Animoca brand invests in a nice cat

August 11, 2025

Is Alt Season finally here, just as Ether Lee’s tearing and a small cap follows?

August 11, 2025

Flareonix airdrop is live! Under the share of 100m FXP today!

August 11, 2025

Carv can be used for transactions!

August 10, 2025

Ethereum (ETH), SEI (Sei), and Bonk (Bonk) gathered in July, but one token is prepared to dominate next.

August 10, 2025

Floki and OnDo expand their profits as Robinhood Listing strengthens.

August 10, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

FLOKI’s Valhalla MMORPG Storms U.S. Television With 60-Day National Commercial Blitz

August 11, 2025

A Global Initiative To Transform Crypto Education From The Ground Up

August 11, 2025

Cango Inc. Acquires 50 MW Bitcoin Mining Facility In Georgia, Laying Groundwork For Future Energy Strategy

August 11, 2025
Most Popular

Separated Witness – How can a replacement happen with a TX with lower fees and charges?

May 17, 2024

Stabul Labs announced the public sales of $ Stabul token at ProBit Global Exchange.

April 3, 2025

Solana rises 7% on rising market sentiment and ETF expectations

January 17, 2025
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.